Case Study: ESQUEL 1. How did bringing the different manufacturing activities in-house help Esquel to control the high quality of their product content and service? ESQUEL started as a trader buying garment and fabric from various companies in China and Malaysia. It further expanded its operations into garment manufacturing, production of woven and knit fabric and cotton ginning, spinning and farming. The companies’ policies towards strong corporate culture, emphasizing on ethical business practices and financial success were the motivating force behind bringing the different manufacturing activities controlled by the company. By making the product from scratch ensures quality of the product is up to the companies’ standard from the farming to finished product. It also allows them to better R&D the product to improvise the product for current competitive market. 2. Do you think Esquel was right in becoming a vertically integrated company? What do you think are the pros and cons of this strategy? In your opinion, what are the unique characteristics of Esquel business that made vertical integration their chosen strategy? The degree to which a firm owns its upstream suppliers and its downstream buyers is referred to as vertical integration. In the case of Esquel I believe it to be a right strategy of vertical integration. This is advantageous in some regards since this would allow the company to control many of the variables that may affect the efficiency and the consistency of your products and service. And better control of the supply chain. The cons would be it would take a lot of time and strategy to do vertical integration. The integration would make the firm dealing with a numerous aspects irrelevant to the product such as proper usage of raw materials. In case of delay of any process it would disrupt the sales. Esquel uniqueness is their control over the quality of the product and service which made vertical integration a remarkable strategy. 3....

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...Esquel-Integration of Business Strategy and Corporate Social Responsibility
As we can learn from the case, despite of the awards Esuqel had got for its CSR efforts, Esquel integrated business strategy and CSR very successfully to achieve its business goal, which is “sustainable growth and prosperity of the company, people and host communities”. We will analyze the drives behind this integration and how Esquel made it work so successfully.
1.Catalyst for Integration
Through the analysis of the case, we mainly believe that the catalyst for integrating CSR and business strategy can be described from three aspects: customer, social policy and business goal.
(1) Customer: As we know, the ultimate goal of Esquel is not to sell products but to serve customers, and the ones their customers serve: end consumers. Consumers now are not like whom in the past years only cared about things like price, quality, time-to-market. Now more and more customers are asking for value-added or green products which mean environment protection during production process, healthy concern and good work condition and welfare for workers. So a winning strategy is the strategy which cares about not only direct consumption-linked factors but also societal needs.
(2) Social Policy: From the development history of Esquel, we can learn that it was very good at capturing opportunities derived from the development of China or...

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China and the Esquel Group
China and the Esquel Group
In response to criticism of it pegging the Yuan to the US dollar, China recently implemented steps toward liberalizing its exchange rate policy; however, a floating Yuan has created uncertainty concerning its impact on China’s economy. While it is likely that allowing the Yuan to appreciate against the US dollar will result in undesirable impacts for China such as deflation, a reduction of foreign direct investment (FDI), and a decline in exports, we believe China will, and should, continue a tempered liberalization of its exchange rate policy. This is necessitated by the potential consequences China faces both politically and economically by not moving towards a floating rate. Politically, China will continue to absorb the majority of the blame for foreign countries’ rising trade deficits, spawning potential legislation dictating import quotas on Chinese products. Economically, a fixed exchange rate will continue to plague China by its dependence on exports and increase its risk of being able to maintain the value of its portfolio of foreign reserves, most notably the United States dollar. It is our belief that these risks outweigh the benefits of China continuing business as usual. As such, the Esquel Group should devise operational strategies that mitigate the risks of an...